Hong Kong News

Nonpartisan, Noncommercial, unconstrained.
Friday, Apr 26, 2024

Fintech Company Stripe Joins Silicon Valley Elite With $35 Billion Valuation

Fintech Company Stripe Joins Silicon Valley Elite With $35 Billion Valuation

Stripe surpasses Airbnb and Palantir valuations in new funding round

Stripe Inc. climbed closer to the top ranks of the highest-priced U.S. startups after a new fundraising round valued the financial-technology company at $35 billion.

Venture-capital firms Sequoia Capital, General Catalyst and Andreessen Horowitz were among the investors behind the $250 million investment, the company said Thursday. The $35 billion valuation, up about 50% from an early 2019 funding round, puts Stripe above Silicon Valley darlings Airbnb Inc. and Palantir Technologies Inc.

Stripe’s technology allows internet companies and online marketplaces to accept credit cards for their goods and services and pay out money to the people and firms that sell on their platforms. It processes hundreds of billions of dollars in payments annually for millions of users, including consumer apps and websites such as Airbnb and The RealReal Inc. and makers of business software such as GitHub Inc. and Twilio Inc.

Investors view payments companies like Stripe as a way to get exposure to a basket of fast-growing public and private tech companies, since Stripe’s revenues are tied to its customers’ growth. The market for payments services is also expanding as more commerce moves away from physical stores and toward digital storefronts.

“Stripe is more than ever a bet on the internet as an economic engine,” said Will Gaybrick, Stripe’s chief product officer.

Founded in 2010, Stripe is middle-aged by Silicon Valley standards, but Mr. Gaybrick and Stripe president John Collison said it had no plans to go public. It has raised around $1.2 billion over the past nine years.

Still, a raft of younger startups, such as Checkout.com, are raising hundreds of millions of dollars in venture capital to challenge Stripe. Traditional payments processors, meanwhile, are selling themselves to larger financial institutions in a bid to bulk up their digital-payments offerings.

Some of those companies have had success picking off business from Stripe’s customers. Dutch payments company Adyen NV said over the summer that it started processing some payments for delivery company Postmates Inc., a longtime Stripe user. Lyft Inc., one of Stripe’s largest customers, disclosed in its IPO prospectus that it added an additional payments processor last year and may create its own payment products in an attempt to lower its costs.

Mr. Gaybrick said that the vast majority of users rely on Stripe to handle all of their payments, and it is adding more countries to its network to help businesses grow internationally. At a conference last week, Stripe announced it was available in eight new European markets.

Stripe also is using the data it collects from the payments it processes to build out its financial services. Earlier this month, it announced it would start issuing corporate credit cards with cash-back rewards and lending money to businesses that process payments through Stripe, using signals such as the percentage of sales coming from repeat customers to determine creditworthiness.

Newsletter

Related Articles

Hong Kong News
0:00
0:00
Close
It's always the people with the dirty hands pointing their fingers
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Steve Jobs' Son Launches Venture Capital Firm With $200 Million For Cancer Treatments
Google reshuffles Assistant unit, lays off some staffers, to 'supercharge' products with A.I.
End of Viagra? FDA approved a gel against erectile dysfunction
UK sanctions Russians judges over dual British national Kara-Murza's trial
US restricts visa-free travel for Hungarian passport holders because of security concerns
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Political leader from South Africa, Julius Malema, led violent racist chants at a massive rally on Saturday
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
'I am not your servant': IndiGo crew member, passenger get into row over airline meal
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Spanish Citizenship Granted to Iranian chess player who removed hijab
US Senate Republican Mitch McConnell freezes up, leaves press conference
Speaker McCarthy says the United States House of Representatives is getting ready to impeach Joe Biden.
San Francisco car crash
This camera man is a genius
3D ad in front of Burj Khalifa
Next level gaming
BMW driver…
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.
×